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PERMIT #: M- 1981 -207 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: June 9, 2011 <br />OBSERVATIONS <br />This inspection was conducted as part of the Division of Reclamation, Mining and Safety's (Division) normal <br />monitoring program. Sean Mello, representing the Operator, was present during this inspection. Photographs <br />are included at the end of this report in order to illustrate some of the conditions observed during this <br />inspection. <br />The Blue Pit is located approximately 2.5 miles northeast of Carbondale and accessed from Hwy 82. The site is <br />a 112c operation that includes a total of 82.7 permitted acres. The Division currently holds a financial <br />warranty amount of $307,000.00 for this site. The Division has reviewed the reclamation costs for this site, in <br />order to ensure the financial warranty reflects the actual current cost of fulfilling the requirements of the <br />Reclamation Plan, and determined that the current financial warranty amount is insufficient. <br />Adequate mine identification signage was noted at the entrance to the site. The boundaries of the affected <br />area were marked with fencing, roads and /or landmarks that were adequate to delineate such boundaries. <br />An office /scale house, scale, fuel storage containment structure, and shop /maintenance facility have been <br />constructed in the southwest portion of the permit area above the pit. A concrete plant has been constructed <br />in the east side of the pit. <br />Mining at the site began in the east side of the permit area, and is progressing in an overall westerly direction. <br />The highwall slopes observed on the south, east and north sides of the affected area were approximately <br />1H:1V to 1.5H:1V. The west highwall slope was approximately 2.5H:1V. <br />A topsoil stockpile was located at the east end of the permit area. <br />Any fuel containers observed onsite were stored in adequate secondary containment structures. <br />Noxious weeds were not observed onsite. <br />Evidence of problematic erosion was not noted during this inspection. <br />No additional problems or violations were noted during this inspection. <br />Responses to this inspection report should be directed to Dustin Czapla at the Division of Reclamation, Mining <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, <br />phone number (970) 243 -6299. <br />Page 2 of 3 <br />